Microsoft beats earnings estimates with $92.3B in revenue as it pushes back against tokenized stock trading

Microsoft beat Wall Street expectations for its fiscal first quarter on Wednesday, reporting $92.3 billion in revenue as demand for artificial intelligence and cloud computing services continued to drive growth.

The company reported revenue growth of 19% for the three months ended September 30, surpassing analysts’ expectations of approximately $90.6 billion. Adjusted earnings reached $4.89 per share, above estimates of about $4.72.

Microsoft shares rose as much as 6% in after-hours trading following the earnings announcement before paring some gains. At press time, the stock remained up nearly 3%, according to Yahoo Finance data.

Microsoft’s earnings rally also highlighted price differences across blockchain-based markets offering exposure to its shares.

Ondo’s tokenized Microsoft stock (MSFTon) traded at a premium to the after-hours share price, while Kraken’s MSFTx and Microsoft perpetual futures on Hyperliquid traded broadly in line with the stock.

Azure revenue surges as Microsoft expands AI infrastructure

Microsoft’s Azure cloud business grew 48% to approximately $33.2 billion, exceeding the company’s earlier guidance of 44% to 45% growth and analysts’ estimates of about $32.2 billion.

The results marked the first quarter in which Microsoft separately disclosed Azure revenue in dollar terms, following a reorganization of its reporting structure into two segments: Agents and Infra, and Devices and Consumer.

Microsoft Cloud revenue increased 30% to $63.9 billion, while the new Agents and Infra division generated $76.8 billion, up 25% year over year.

The company reported $677 billion in commercial remaining performance obligations, representing contracted revenue that has not yet been recognized. The figure increased 73% from a year earlier but remained relatively flat compared with $678 billion in June.

Commercial bookings declined 12%, although Microsoft’s cloud revenue growth continued to reflect enterprise spending on AI computing infrastructure.

Capital expenditures paid in cash totaled approximately $39.4 billion, below analysts’ expectations of roughly $45.9 billion, as Microsoft continued investing in data centers and computing capacity to support AI demand.

Chief Executive Officer Satya Nadella said Microsoft is translating its AI investments into broader adoption across industries, while Chief Financial Officer Amy Hood said the company exceeded expectations across revenue, operating income and earnings per share.

Microsoft objects to tokenized stock trading on OKXICE

Microsoft’s earnings come amid a broader debate over how publicly traded companies should be represented on blockchain networks.

The company was among the issuers that objected to tokenized versions of their shares trading on OKXICE, the proposed securities venue backed by crypto exchange OKX and Intercontinental Exchange.

The October 19 notice also identified Alphabet and Goldman Sachs among the companies seeking to block trading of their tokenized shares through the platform.

The objections were filed under the Securities and Exchange Commission’s Innovation Exemption, which allows issuers to prevent qualifying venues from offering tokenized versions of their securities.

Microsoft’s objection applies specifically to OKXICE and does not extend to other tokenized stock offerings, including MSFTx on Kraken.

An International Monetary Fund study published in October found that traditional stocks absorbed approximately 87% to 99% of the overnight price movements recorded by their tokenized counterparts within the first five minutes of regular trading.

The findings suggest that tokenized equities can reflect market developments outside conventional trading hours, even as price discovery remains closely connected to the underlying shares.